Asset-Based Logistics vs. Non-Asset-Based 3PL: Which is Right for You?

When it comes to third-party logistics (3PL) providers, there are many similarities. We all conduct supply chain functions in various forms, focusing on increasing overall efficiency for clients while reducing costs. However, a key distinction exists: the type of assets involved. Understanding the difference between asset-based and non-asset-based 3PLs is crucial for making the right choice for your business.

What to Know About Asset Based 3PLs

Asset-based 3PL providers own some or all of the physical assets necessary for supply chain management. At Brendamour Warehousing, Distribution & Services, we are an asset-based logistics provider because we own our:

• Warehouses
• Racking Systems
• Lift Trucks
• Warehouse Equipment
• Computerized Warehouse Management Systems & other warehousing and distribution equipment

We also have contract trucking partnerships with interstate and intrastate trucking companies, allowing us to obtain the lowest possible prices for distributing your goods.

Owning assets enables asset-based logistics companies to offer complete supply chain solutions, from storing to moving goods, at a low cost. They can manage every step of the supply chain process in-house, ensuring greater control and efficiency.

Asset-based 3PLs also offer stability due to their long-term investment in operations. They are more likely to expand rather than close or relocate, providing consistent and reliable services without the worry of lease terminations.

Understanding Non-Asset Based 3PLs

Non-asset-based 3PL providers do not own their assets. Instead, they contract with various warehouses, distribution centers, and trucking companies to manage and execute their clients’ supply chain needs. This model allows for greater flexibility in handling diverse client needs and providing logistics solutions.

However, because non-asset-based logistics providers outsource responsibilities to other companies, there are more parties involved in storing and moving goods, increasing the risk of errors. With no assets at stake, non-asset-based 3PLs lack a long-term commitment to any location or business operation.

Choosing Between Asset and Non-Asset 3PLs

Selecting a third-party logistics provider involves weighing the advantages and disadvantages of asset-based and non-asset-based 3PLs. Here’s a comparison to help with your decision:

Asset-Based 3PL	Non-Asset Based 3PL
Easy access and instant availability to trucks, warehouses and other logistics.	Greater flexibility in meeting diverse supply chain needs on a case-by-case basis.
High efficiency in managing all or part of your supply chain functions.	Costs depend on effective negotiations, but market changes may cause higher costs.
The lowest cost possible through the use of sophisticated warehouse management systems.	Relies on the personnel and work standards of numerous outsourced vendors, increasing the risk of error.
Dealing with one company with very few go-betweens reduces the risk of error.	Acts more as transportation consultants, determining the best method and price to move your product.
Expertise in managing their assets benefits their clients.	Larger database of logistics contacts.

Brendamour is Your Local Cincinnati and Northern Kentucky Asset-Based Logistics Partner

At Brendamour Warehousing and Distribution, we offer the best of both worlds. We own the assets involved in warehousing, ensuring stability and efficiency, while leveraging our database of trusted carriers to move your goods effectively and efficiently.

Our goal is to serve your midwest 3PL needs, whether it’s warehousing, inventory control, order fulfillment, processing, packing, distribution, or office rentals. We also handle import and export needs and are a designated foreign trade zone. Think of us as an extension of your company, providing any service you need. Whenever you need extra support, think of us at Brendamour Warehousing, Distribution & Services.

Ready to streamline your logistics with a reliable and efficient partner? Contact Brendamour Warehousing, Distribution & Services today! Call us at one of our 4 Cincinnati and Northern Kentucky 3PL locations, email us at Info@Brendamour.com or fill out our inquiry form to discuss how we can meet your specific logistics needs. Experience the stability and efficiency of an asset-based logistics partner with the flexibility and reach of a non-asset-based provider. Let us help you achieve your supply chain goals!